Why Parsa is Launching on Solana

Choosing the right blockchain is a critical decision for any DeFi application. For Parsa—a platform introducing a novel derivative called range perpetuals, which combines the flexibility of options with the simplicity and efficiency of perpetual futures—the choice of blockchain determines our ability to deliver a seamless and high-performance experience to our users.

When evaluating blockchains, we considered several key factors:

  • Performance Needs: Our platform requires high transactions per second (TPS) and low latency to handle complex computations and frequent price updates.

  • Cost Efficiency: Low transaction fees are essential to make frequent trading and interactions economically viable for our users.

  • Computational Complexity: Supporting heavy onchain calculations and substantial data storage is crucial for accurately managing positions and pricing.

  • Development Tools and Ecosystem: Mature development tools and a supportive community enable us to build, test, and iterate quickly.

After extensive research and testing, we've determined that Solana is the ideal platform for our initial mainnet launch.

Our Journey So Far

Developing an innovative product like range perpetuals demanded a focus on speed and adaptability. Our priority was to deliver a functional beta quickly to gather user feedback. Initially, we focused on building a working platform rather than ensuring it was fully non-custodial since paper trading doesn’t require the same security guarantees as with real funds. For this reason, we chose to implement the first version of the Parsa engine offchain, allowing us to focus on rapid iteration.

Leveraging our expertise with EVM-compatible chains, we launched our beta on Base Sepolia and later Berachain. We settled stablecoins (used to enter and exit markets) and positions (represented as NFTs to enable secondary markets) on these chains, with position calculation logic offchain. Both offered vibrant ecosystems, clear growth trajectories, ample liquidity, and promising partnership opportunities. In particular, Berachain provided a supportive community and fruitful collaborations with fellow builders. We remain confident in the potential of these chains.

As we progressed toward a mainnet release, achieving a truly non-custodial and decentralized platform became a priority. This shift required migrating our position value calculation logic onchain or to a distributed offchain compute network. Upon reevaluating our options, we encountered significant challenges.

Unfortunately, EVM-compatible chains lack the performance needed for Parsa to operate solely within EVM smart contracts. Our platform requires frequent recalculations of tick prices involving complex arithmetic on large arrays, which the EVM handles inefficiently. The high gas costs for such computations make a fully onchain implementation infeasible without significant compromises to the product. While promising solutions like Monad and MegaETH aim to enhance EVM performance, they are not yet production-ready.

We considered using an offchain computation network while remaining on an EVM chain, but this approach introduces significant complexity and risk. Offchain computation requires external nodes to perform calculations and securely transmit results back to the blockchain. This adds layers of complexity in ensuring data integrity, synchronization, and security. It also necessitates robust mechanisms to verify offchain data onchain and safeguard against potential discrepancies or malicious actors. Managing both onchain and offchain infrastructures complicates development and increases the risk of bugs, security vulnerabilities, and system failures—all of which could negatively impact user trust and platform reliability.

Why Solana?

Solana emerged as the optimal solution for our platform's needs due to several key factors:

  • High Performance: Solana's architecture supports high TPS and low latency, ensuring smooth and efficient operations for our users.

  • Cost-Effective Transactions: With minimal transaction fees, Solana makes frequent computations and user interactions economically feasible.

  • Advanced Computational Capabilities: Solana's programming model accommodates complex onchain computations, perfectly aligning with Parsa's technical requirements.

  • Robust Development Tools: The mature tooling and developer resources available on Solana enable us to build and iterate quickly.

  • Thriving Ecosystem: Solana boasts a rapidly growing user base and a wealth of integration opportunities with other innovative projects.

By choosing Solana, we can deliver a fully non-custodial, high-performance platform without compromising on speed or user experience. We are excited about the opportunities this move presents and are confident that Solana's ecosystem will enhance Parsa's growth and success.

To showcase the capabilities of our platform on Solana, we have recently relaunched our paper trading beta on the Solana Devnet. This beta allows users to experience Parsa's innovative range perpetuals firsthand, without the risk of real funds.

We invite you to participate in our paper trading beta to explore the features and provide valuable feedback. Your insights will help us refine the platform as we move closer to our official mainnet launch.

As we continue to make rapid progress, we're excited about what's on the horizon. Stay tuned for more updates in the coming weeks—big things are just around the corner.

Get Involved

Together, let's push the boundaries of what's possible in DeFi trading. Your participation is crucial to making Parsa the best it can be.